BitCoin Exchange - page 4. | Bitcointalksearch.org

Carlsen

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Quote from: BrewMaster on March 01, 2017, 11:05:26 AM

Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

if you just want to invite more people to bitcoin then don't expect any profit at all. it should be done out of love for bitcoin and its future.

if you want profit only then it depends on the location and the fact that are people even interested in buying bitcoin physically? and what kind of customer would that attract?! i mean any regular person would just buy on an exchange (online) unless your shop offers better price which i doubt because of the fees that has to be added for profitability.

It's just a personal feeling, but I think it will be hard to get enough people into a shop so that it's profitable.
The bitcoin community is spread all around the globe.
And sure, you will find some bitcoiners in every city. But will those be enough to cover your costs?
Somehow I doubt that.

BrewMaster

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

if you just want to invite more people to bitcoin then don't expect any profit at all. it should be done out of love for bitcoin and its future.

if you want profit only then it depends on the location and the fact that are people even interested in buying bitcoin physically? and what kind of customer would that attract?! i mean any regular person would just buy on an exchange (online) unless your shop offers better price which i doubt because of the fees that has to be added for profitability.

SpaceBTC

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Even an electronic exchange is quite hard to develop and maintain, considering most banks don't want to do anything with crypto and freeze crypto-related business accounts often.
A physical exchange will have this problem in spades, not to mention a constant stream of smearing by mainstream businessmen and lawmakers.

Nahl

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yes it is profitable but only if the exchange have a lot of active traders but you have to know that making cryptocurrency exchange is very risky because it can be aiming for the hackers and i think you had been heard that there are some exchanges got hacked and losing a lot of bitcoin and to making new exchanges besides the advantages you should thinking also about disadvantages too

Casanova18

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Quote from: bamboylee on March 01, 2017, 09:39:01 AM

Bitcoin exchange can be profitable business. But what will be the difference of your exchange against an online exchange site?If you cannot present a remarkable difference or advantage against online exchange, your business may die because of lack of customers. Personally, I prefer to do transactions online in the comfort of my home. But if you can present an advantage that can convince customers to get out and go to your store to exchange bitcoin, maybe your business have a chance to thrive and make profit.

It's a good idea, but firstly it requires a large investment, and secondly, where you have a guarantee that people will want to change bitcoins from you? I for example will never change to a new exchange, or where I or my friends have not changed. I better change more on a proven exchange the cheaper on is not checked.

bamboylee

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Bitcoin exchange can be profitable business. But what will be the difference of your exchange against an online exchange site?If you cannot present a remarkable difference or advantage against online exchange, your business may die because of lack of customers. Personally, I prefer to do transactions online in the comfort of my home. But if you can present an advantage that can convince customers to get out and go to your store to exchange bitcoin, maybe your business have a chance to thrive and make profit.

Kasabus

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

In general it's profitable as you only get fees on transactions. Your aim is to invite more people to sign up in your site and exchange their bitcoins and that is where the expense will come. People will not use your exchange site if your site is not well designed and safe, bear in mind that the competition is there and if you want to succeed, you also need to compete or even outperform your competitors.

Jannn

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Thats a good idea and Bitcoin exchanges is very profitable but running Bitcoin exchanges is need more work to do on it.

Arcteryx

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If you do start an exchange and it gets popular and makes a lot of business then you would need to file taxes on those transactions and probably get a license to have it run.
Depending on you regional location that is. Wink

just_Alice

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Depends on where you are living. People create online exchanges because even if in thier area there are few Bitcoin users they can reach others by internet. But if you are living in a place where a lot of people use Bitcoin on a dialy basis then phisical exchange makes big sense. People who don't trust online services, and actually they have a lot of reasons for that, will go to your place.

Dmitry.Vastov

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Yup. Its profitable business. Excahnge usually gets profits for every transactions has been made. Some exchange takes .02% or more. I think China exchanges the cheapest fee for every transactions. Actually China exchanges are not charging fees. But they are forced to take fees because of PBOC. If you want to create an exchange site. I think fee is the key to make it successful. So make the fee cheap.

pinkflower

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Quote from: Xester on March 01, 2017, 05:38:26 AM

Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Yes it is very profitable and I have tried to do some selling and buying in small amounts for my friends when MMM is still around and kicking. The secret is to make a wide gap between buy and sell so you can really gain something. For example the price of bitcoin for sale is 1000$ as stated in the exchangers then you sell bitcoins at 1001$ then if they will sell their bitcoins you will buy them at 995$. That way you will gain profit and if they complain just tell them to look for another seller and buyer if they are not satisfied with your services. To small time clients that will be plausible but to big time clients I dont know if it will work.

How profitable is it? Can you give us how much you earn monthly? It doesnt have to be the exact monthly earnings, just a ballpark figure will do, how many clients you have and how did you get those clients. Another important figure to look at is the growth rate. How large is your market and how much growth do you expect to have to maintain your trading business' success?

mindrust

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You need a huge customer base for it to be profitable. And if you are starting from the ground zero, then you'll need a big capital to advertise your website, because many companies which started earlier are already dominating the markets. You'll be fighting them to steal their customers.

And you will need licenses if you enable USD/Crypto trades. When the actually FIAT involves in your trades, it brings so much trouble with it. You'll need lawyers. A lot.

Xester

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Yes it is very profitable and I have tried to do some selling and buying in small amounts for my friends when MMM is still around and kicking. The secret is to make a wide gap between buy and sell so you can really gain something. For example the price of bitcoin for sale is 1000$ as stated in the exchangers then you sell bitcoins at 1001$ then if they will sell their bitcoins you will buy them at 995$. That way you will gain profit and if they complain just tell them to look for another seller and buyer if they are not satisfied with your services. To small time clients that will be plausible but to big time clients I dont know if it will work.

cakravothy

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

if you want develop exchanger must same use major exchanger, example bitstamp, bitfinex and more and you must have high skill quality programing, security and more, and must have high capital money
if you want only direct buy/sell sending youre addres and payment use local bank, is not campatible if must competition youre local exchanger
if you only buy/sell you can use marketplaced example localbitcoins.com

calkob

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

Yeah like you said it would really depend on the location, but then is that really what people want? i'm not so sure. Not only that but there would probably be a massive outly just to get the business open and then you would also have some serious red tape to deal with from government. I would say that unless you have a fortune sitting in the bank and love high risk venture, then i wouldn't bother.

Gotottack

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Quote from: SFR10 on March 01, 2017, 05:14:25 AM

Not sure where you're staying but will base my answer on my own location. I've worked with a local offline (on spot) exchange before and the actual volume of BTCitcoin trades never been to a level that gains you any significant amount in terms of taking few percentages from each trades (my guess is, it's due to all the other alternative options that can be done with a press of a button, in other words online trades are way more popular than the traditional exchanges since the whole steps are a lot easier). On the other hand, it isn't worth the hassle to go and take permits just to see yourself making few trades on a daily basis.

Yeah I agree with this. Offline is really limited to what you can offer to the public, and talk about expensive advertising to just have people know you exist. Another thing is the hassle of moving to and fro the exchange. Making it online will make things really easy for everybody and you will have more audience when it comes to advertising it. And I think 90% of the people using bitcoins would likely prefer it online.

SFR10

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Not sure where you're staying but will base my answer on my own location. I've worked with a local offline (on spot) exchange before and the actual volume of BTCitcoin trades never been to a level that gains you any significant amount in terms of taking few percentages from each trades (my guess is, it's due to all the other alternative options that can be done with a press of a button, in other words online trades are way more popular than the traditional exchanges since the whole steps are a lot easier). On the other hand, it isn't worth the hassle to go and take permits just to see yourself making few trades on a daily basis.

CyberKuro

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Quote from: severaldetails on March 01, 2017, 04:37:04 AM

I do not think that an offline exchange will be profitable.
Lets say it would be legal to run the exchange. Every offline exchange is in direct competition to the online exchanges.
You would have to give the people a reason why they should come to you instead of staying at home and using the online exchange.
Your fees would have to be much higher than in online exchanges because you have much higher costs (rooms, employes, etc).
High fees scare people away and do not attract them.
And the number of people you can reach even in a city is way smaller than in the internet.

It will be profitable though it can't grow bigger than online exchange, as he said about the location may affect his business.
I will say, just go on and try it. Without that, we don't know how it will be in the future, but I'm pretty sure you will get profits and make good relationship with your customers. Implement decent fees is important thing, I suggest it around $1.5-$2 for each transaction below $100 and 2% fees per transaction above $100, just calculate your interest as you want.
And, if you're ready to go online, it will be great for your business.

LuanX3

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Quote from: shamzblueworld on March 01, 2017, 03:07:36 AM

Is making a bitcoin exchange a profitable business? Has anyone have any experience?
And I don't mean an online one, but a local one where people can go and buy/sell bitcoin.
What do you think?
I can understand that it will depend upon the location, but I think it can help in inviting more people to bitcoin too, right?

You can make an offline one, but you'll be back to technologies how they traded stocks like in the 90s where you have an agent or someone handling accounts. Which is primitive and inefficient. Also, it will still be online as you have to send transactions and all. What would happens is that its just an atm where people buy and then leave, or sell and leave.

Topic: BitCoin Exchange - page 4. (Read 3248 times)